Witnesses say broad program terminations, contract pauses are disrupting U.S. foreign assistance
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Summary
Nonprofit witnesses told the House appropriations subcommittee that recent administration reviews and funding halts have terminated dozens of democracy, health and development programs and left some contractors unpaid; lawmakers asked groups to submit details for the record.
Ranking Member Frankel and several outside witnesses at the House Appropriations Subcommittee on National Security, Department of State and Related Programs’ outside-witness hearing warned that recent administrative realignments have led to widespread program terminations and contract pauses affecting democracy, development and health projects.
Why it matters: Witnesses said the terminations are interrupting services to vulnerable populations, shuttering field offices and cutting dozens of programs that partners say advance U.S. national security and economic interests.
At the hearing, Ranking Member Frankel said the administration’s actions “to gut these institutions without consulting Congress is not only irresponsible, it is illegal,” and described the effect as a “sledgehammer” rather than careful oversight. Several witnesses reported terminated awards, furloughed staff, and unpaid invoices.
Multiple implementing organizations described the scale of the disruption. The National Democratic Institute reported a 70% loss of program funding and that 93 of 97 awards were terminated, leaving nearly three-quarters of its field offices closed. Testimony from other democracy and implementing partners described similar large-scale terminations and staff losses. Catholic Relief Services said it had a list showing “74 programs terminated that serve 20,000,000 people” and agreed to submit that list for the record.
Contract and payment problems were raised repeatedly. A representative of Adeze Nutrition, which manufactures ready-to-use therapeutic food (RUTF) in the United States, told the subcommittee that while its contracts were not terminated, the company had not received any payments since October and was owed about $24,000,000. Food for the Hungry and other implementers described programs carried forward with private funds while awaiting government payments.
Lawmakers pressed witnesses to provide written information. Chair Diaz Balart and members repeatedly asked organizations to submit terminated-contract lists and other documentation “for the record.” Several witnesses said they would do so.
What was not decided: The hearing recorded no formal votes or committee actions. Members requested documentation and said they would use the submissions in the FY2026 appropriations process.
Ending: Members closed the hearing by thanking witnesses and noting the committee would continue oversight and follow-up with the organizations that testified.
